At the beginning of $2016,$ Norris Company had a deferred tax liability of $$6,300,$ because of the use of MACRS depreciation for income tax purposes and units$-$of$-$production depreciation for financial reporting. The income tax rate is $30\%$ for $2015$ and $2016,$ but in $2015$ Congress enacted a $40\%$ tax rate for $2017$ and future years.

Norris$$s accounting records show the following pretax items of financial income for $2016$: income from continuing operations, $$118,200($revenues of $$352,200$ and expenses of $$234,000)$; gain on disposal of Division F$,$ $$21,000$; loss from operations of discontinued Division F$,$ $$9,700$; and prior period adjustment, $$15,300,$ due to an error that understated revenue in $2015.$ All of these items are taxable; however, financial depreciation for $2016$ on assets related to continuing operations exceeds tax depreciation by $$4,900.$ Norris had a retained earnings balance of $$162,000$ on January $1,2016,$ and declared and paid cash dividends of $$30,600$ during $2016.$

Required:

$1.$ Prepare Norris$$s income tax journal entry at the end of $2016.$

$2.$ Prepare Norris$$s $2016$ income statement.

$3.$ Prepare Norris$$s $2016$ statement of retained earnings.

$4.$ Show the related income tax disclosures on Norris$$s December $31,2016,$ balance sheet.